The monarch, 93, is publicly supportive of Prince Harry and Meghan Markle's decision to step down as senior royals but 'generally doesn't want to talk about it', the anonymous insider claimed.
Speaking to royal correspondent Katie Nicholl, the source explained the Queen fears the ongoing discussions are damaging to the monarchy as an institution, and have put a strain on personal relationships within the family.
The source said: 'The Queen has been keen to get this resolved because she sees it is damaging to the monarchy and on a personal level I think this has been rather hurtful for her.
'She has got to the point where she doesn't want to think about it anymore, she just wants it over and done with.'
The comments come days after Buckingham Palace announced the Duke and Duchess of Sussex would not be allowed to use the word 'Royal' in any branding after they officially step down from their positions on March 31.
The Duke and Duchess issued a statement on the matter on Friday night, revealing they had dropped plans to trademark 'SussexRoyal' and will stop using the branding, which appears on their website and Instagram, from spring.
A spokeswoman said: 'While the duke and duchess are focused on plans to establish a new non-profit organisation, given the specific UK Government rules surrounding (the) use of the word Royal, it has been therefore agreed that their non-profit organisation, when it is announced this spring, will not be named Sussex Royal Foundation.
'The Duke and Duchess of Sussex do not intend to use 'SussexRoyal' in any territory post-Spring 2020.'
The spokeswoman explained that trademark applications that were filed as protective measures 'acting on advice from and following the same model for the Royal Foundation' have been removed.
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